Lakes Entertainment, Inc. Announces Final Transfer of Dania Interest
October 22 2014 - 6:30AM
Business Wire
Lakes Entertainment, Inc. (LACO) announced that on
October 17, 2014, it received a payment of approximately $1.4
million from ONDISS Corp. (“ONDISS”) for the transfer of Lakes’
remaining interest in Dania Entertainment Center, LLC (“DEC”) to
ONDISS. Lakes Florida Development, LLC, a wholly owned subsidiary
of Lakes, had previously entered into a Purchase Agreement with
ONDISS pertaining to the sale of Lakes’ membership interest of DEC
(“Purchase Agreement”). The Purchase Agreement provided that ONDISS
would pay Lakes a total purchase price of approximately $2.6
million for Lakes’ ownership in DEC. ONDISS made an initial payment
to Lakes of $1.0 million on April 21, 2014 at which time 40% of
Lakes’ ownership in DEC was transferred to ONDISS. The remaining
purchase price was scheduled to be made over three equal
semi-annual installments of approximately $0.5 million, and 20% of
Lakes’ ownership in DEC would be transferred to ONDISS upon each
payment. In place of the three remaining payments, Lakes and ONDISS
negotiated the discounted final payment amount of approximately
$1.4 in consideration of Lakes transferring its remaining ownership
in DEC on October 17, 2014. As a result of this payment, Lakes will
recognize a gain of $1.4 million during the fourth quarter of
2014.
“We are pleased to have closed out our investment in Dania,”
said Lyle Berman, CEO of Lakes. “Given the current uncertainty in
the Florida gaming market, we believe that receiving the
accelerated payment of $1.4 for our remaining ownership in Dania is
a good result for our shareholders,” added Mr. Berman.
About Lakes Entertainment
Lakes Entertainment, Inc. currently owns the Rocky Gap Casino
Resort near Cumberland, Maryland, and has an investment in Rock
Ohio Ventures, LLC’s casino and racino developments in Ohio.
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made or to be made by
Lakes Entertainment, Inc.) contains statements that are
forward-looking, such as statements relating to plans for future
expansion and other business development activities as well as
other capital spending, financing sources and the effects of
regulation (including gaming and tax regulation) and competition.
Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future and, accordingly, such results may differ from those
expressed in any forward-looking statements made by or on behalf of
the company. These risks and uncertainties include, but are not
limited to, those relating to the inability to complete or possible
delays in completion of Lakes' casino projects, including various
regulatory approvals and numerous other conditions which must be
satisfied before completion of these projects; possible termination
or adverse modification of management or development contracts;
Lakes operates in a highly competitive industry; possible changes
in regulations; reliance on continued positive relationships with
Indian tribes and repayment of amounts owed to Lakes by Indian
tribes; risks of entry into new businesses; reliance on Lakes'
management and litigation costs. For more information, review the
company's filings with the Securities and Exchange Commission.
Lakes Entertainment, Inc.Timothy Cope, 952-449-7030
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